Italy's borrowing costs fall at auction on rising rate cut bets
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ROME, Sept 27 (Reuters) -Italian borrowing costs fell to a more than two-yearlow at an auction on Friday as investors' expectations that the European Central Bank could cut interest rates in October keep rising.
The Rome-based Treasury sold the top planned amount of 8.75 billion euros ($9.75 billion) over four bonds.
It allotted 3.5 billion euros in a 10-year BTP bond due February 1, 2035 with a 3.43% yield, down from 3.68% touched at end-August auction. It was the lowest level since May 2022.
It placed 2.5 billion euros in the tap of a 5-year BTP maturing on October 1, 2029 fetching a 2.76% gross yield, the lowest since June 2022, compared with 3.08% in the previous auction.
The Treasury also placed 1 billion euros in a BTP due August 1, 2029 and 1.75 billion euros in a CctEu bond maturing on October 15, 2030, with yields respectively at 2.68% and 4.68%.
($1 = 0.8974 euros)
Reporting by Antonella Cinelli, editing by Alessia Pé and Alvise Armellini
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